11 April 2012
HELLO FRIENDS THERE IS A JV FORMED WITH TWO PARTNERS, BOTH PARTNERS ARE PRIVATE LIMITED CONCERNS. IN JV, JV HAS HIRED A FOREIGN TECHNICAL COMPANY.ONE OF THE PARTNER COMPANY HAS MADE PAYMENT TO FOREIGN COMPANY ON BEHALF OF JV.PARTNER COMPANY HAS DEDUCT TDS ON THIS PAYMENT. I HAD A QUERY THAT IS THIS PAYMENT IS ALLOWED AS EXPENDITURE IN JV OR NOT?
11 April 2012
yes it is allowableexpenditue since TDS is deducted although partner company has deducted TDS on behalf of JV. Only journal entry is to be passed in books of JV.
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